CMA
CMA MICHIGAN
MUNICIPAL MONEY FUND
Semi-Annual Report
September 30, 1996
MERRILL LYNCH BULL LOGO
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance, which will fluctuate. The Fund
seeks to maintain a consistent $1.00 net asset value per share,
although this cannot be assured. An investment in the Fund is
neither insured nor guaranteed by the US Government. Statements and
other information herein are as dated and are subject to change.
<PAGE>
CMA Michigan
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
Printed on post-consumer recycled paper
TO OUR SHAREHOLDERS:
For the six-month period ended September 30, 1996, CMA Michigan
Municipal Money Fund paid shareholders a net annualized yield of
2.83%.* As of September 30, 1996, the Fund's 7-day yield was 3.03%.
<PAGE>
The Environment
Although the US stock and bond markets rallied late in the six-month
period ended September 30, 1996, much of the period was marked by
volatility in the capital markets. The US economy demonstrated
surprising resilience during the first half of the year. As a
result, when economic data releases appeared to indicate that the US
economy was expanding at a stronger-than-expected (and potentially
inflationary) rate, investors focused on the increasing possibility
of monetary policy tightening by the Federal Reserve Board. During
these periods, stock prices declined and long-term interest rates
moved higher. However, with inflationary pressures still under
control, the US central bank did not tighten monetary policy at its
September 24 meeting. This development, coupled with several
economic data releases that showed growth was at or below
expectations, helped to assuage investors' concerns about an
overheating economy. Stock and bond prices improved, with stock
market averages reaching historic high levels.
The shifts in perceptions were exemplified by investors' reactions
to the release of recent employment reports. Inflationary concerns
were heightened in early July with the release of a stronger-than-
expected employment report for June. However, more subdued job
growth and decelerating hourly wage gains were subsequently reported
for the month of July. Although the employment report for August
showed that unemployment had dropped to its lowest level since 1989,
these results were generally in line with expectations and were
received favorably by investors. The greatest boost in investor
confidence occurred in early October with the release of September's
employment report, which showed a slight increase in unemployment.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
Investors will continue to monitor economic data releases to
determine the probable direction of the US economy. The outcome of
the upcoming November election will also increasingly influence
investor psychology in the weeks ahead.
Investment Outlook and Strategy
While auto industry employment remains the heart of Michigan's "job
machine," a growing percentage of Michigan jobs are being generated
outside the automotive sector. For example, according to state
officials, the share of employment in the State's durable goods
sector has fallen from 33.1% in 1960 to 15.8% in 1996. Additionally,
drawing upon the state's higher education and health care
infrastructure, more bio-tech companies are locating in Michigan,
particularly in the Ann Arbor area. Moreover, Michigan's economy
continued its strong showing in August as employment grew in most
<PAGE>
industries across the State, pushing total employment up for the
month. In fact, the State's unemployment rate dropped back to the
record low level it had reached in June, falling to a seasonally
adjusted 4.5% in August, according to the Michigan Employment
Security Commission. In addition, despite unpleasantly high
incentives, analysts expect US automakers' third quarter profits to
rise approximately 36% to a combined $1.9 billion as a result of
stronger domestic sales and production. However, for the remainder
of 1996, we expect moderate economic growth nationally to translate
into more modest Michigan economic performance. Consequently, annual
job creation will likely remain slow but steady in the 1.0%--1.5%
range.
During the six-month period ended September 30, 1996, the majority
of economic indicators reported pointed to strong domestic growth.
For example, final revision to second quarter gross domestic product
showed the economy grew at an impressive 4.7% during this period.
Thus, with the increasing probability that the Federal Reserve Board
would tighten monetary policy, we opted to maintain a relatively
short average portfolio maturity in the 35-day range for the first
half of the six-month period. This benefited the Fund as a result of
the fact that variable rate demand obligations outperformed fixed-
rate products during most of the first three months of the period.
However, as we entered the second half of the six-month period, it
became evident that the Federal Reserve Board was comfortable that
economic growth was not strong enough to cause any significant
inflationary pressures. Furthermore, with traditional short-term
supply entering the market during late July and August, the short-
term tax-exempt yield curve steepened with interest rates on one-
year paper approaching 4.0%. Consequently, with the expectation that
monetary policy may be on hold for a while, we extended the Fund's
average portfolio maturity to the 55-day range by mid-September
1996. A majority of this extension was achieved with the purchase of
$15 million Detroit, Michigan (Wayne County) State Aid Notes which
yield 3.95% and mature on May 1, 1997.
During the six-month period ended September 30, 1996, the State of
Michigan's short-term issuance totaled $1.6 billion, an increase
from the $951 million issued during the previous six-month period.
Finally, we will continue to monitor the marketplace for
opportunities that we believe represent value to our shareholders.
Diversification and credit quality remain paramount to the Fund.
In Conclusion
We thank you for your support of CMA Michigan Municipal Money Fund,
and we look forward to serving your investment needs in the future.
Sincerely,
<PAGE>
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Darrin J. San Fillippo)
Darrin J. San Fillippo
Vice President and Portfolio Manager
October 24, 1996
Portfolio Abbreviations for CMA Michigan Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
CP Commercial Paper
HDA Housing Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
S/F Single-Family
TAN Tax Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
CMA MICHIGAN MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1996 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Michigan-- $ 1,025 Bedford Township, Michigan, Economic Development Corp. Revenue Bonds
98.3% (Form-Tech Steel Inc. Project), VRDN, 4% due 3/01/2010 (a) $ 1,025
4,500 Berrien County, Michigan, Economic Development Corp. Revenue Bonds
(Arlington Corp. Project), VRDN, 3.95% due 9/01/2016 (a) 4,500
4,000 Chelsea, Michigan, Economic Development Corp., Limited Obligation
Revenue Bonds (Silver Maples of Chelsea), VRDN, 3.80% due 5/15/2028 (a) 4,000
3,800 Davison, Michigan, Community School District, State Aid Notes, 4.40% due
3/31/1997 (e) 3,806
175 Delta Township, Michigan, Economic Development Corp., IDR, Refunding
(Schottenstein Stores), VRDN, 3.85% due 12/01/1997 (a) 175
15,000 Detroit, Michigan, City School District, State School Aid Notes, 4.50%
due 5/01/1997 15,047
Detroit, Michigan, Water Supply System Revenue Bonds, Municipal Trust
Floating Rate Receipts, VRDN (a)(f):
2,000 Series 6, 3.95% due 7/01/2025 2,000
3,500 Series 64, 3.95% due 7/01/2025 3,500
1,000 Eaton, Michigan, Inter-School District, TAN, 4.20% due 4/01/1997 (e) 1,001
1,300 Farmington Hills, Michigan, Economic Development Corp., Limited
Obligation Revenue Refunding Bonds (Brookfield Building Association),
VRDN, 3.85% due 11/01/2010 (a) 1,300
2,800 Flint, Michigan, Economic Development Corporation, Economic Development
Revenue Bonds (Plastics Research Corp.), VRDN, AMT, 3.90% due 9/01/2004 (a) 2,800
9,000 Garden City, Michigan, Hospital Finance Authority, Hospital Revenue Bonds
(Garden City Hospital Obligation), VRDN, Series A, 3.85% due 9/01/2026 (a) 9,000
3,000 Garden City, Michigan, School District, State Aid Notes, 4.30% due 4/15/1997 (e) 3,008
3,400 Genesee County, Michigan, Economic Development Corporation, Limited
Obligation, Economic Development Revenue Bonds (MM&E Inc. Project),
VRDN, 3.90% due 7/01/2005 (a) 3,400
2,300 Georgetown Charter Township, Michigan, IDR, Limited Obligation
(J & F Steel Corp.), VRDN, AMT, 3.90% due 2/01/2009 (a) 2,300
6,100 Grand Rapids, Michigan, Economic Development Corp., Economic Development
Revenue Refunding Bonds (Amway Hotel Corp.), VRDN, Series A, 3.80% due
8/01/2017 (a) 6,100
600 Grand Rapids, Michigan, Economic Development Corp., Limited Obligation
Revenue Refunding Bonds (Calder), VRDN, Series A, 3.80% due 10/01/2011 (a) 600
1,000 Grand Rapids, Michigan, Economic Development Corp. Revenue Bonds
(Amway/Grand Plaza Hotel, Facility #1), VRDN, 3.80% due 12/01/2006 (a) 1,000
2,810 Grand Rapids, Michigan, IDR, Refunding (Etheridge Company Project), VRDN,
AMT, 3.90% due 7/01/2009 (a) 2,810
1,200 Grand Rapids, Michigan, Water Supply System, Revenue Refunding Bonds,
7.75% due 1/01/1997 (b) 1,235
440 Kalamazoo, Michigan, City School District, Refunding, UT, 3.70% due 5/01/1997 (d). 440
980 Kalamazoo, Michigan, Public Library, 4% due 4/01/1997 980
4,500 Kalamazoo, Michigan, TAN, 3.75% due 12/31/1996 4,506
1,150 Lenawee County, Michigan, Economic Development Corporation, Limited
Obligation Revenue Bonds (The Wyatt Project), VRDN, 4% due 5/01/2002 (a)(c) 1,150
</TABLE>
<PAGE>
<TABLE>
CMA MICHIGAN MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1996 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Michigan $ 1,000 Livingston, Michigan, Educational Service Agency, TAN, 4.10%
(continued) due 4/01/1997 (e) $ 1,000
900 Melvindale, Michigan, Economic Development Corporation, Limited Obligation
Revenue Refunding Bonds (North American Steel Project), VRDN,
3.80% due 6/01/1998 (a) 900
1,700 Michigan Higher Education Student Loan Authority Revenue Bonds, VRDN,
AMT, Series XII-D, 3.90% due 10/01/2015 (a)(c) 1,700
Michigan Municipal Bond Authority Revenue Notes:
7,500 Series A, 4.50% due 7/03/1997 7,533
1,000 Series B, 4.50% due 7/25/1997 1,005
3,500 Series D, 4.50% due 9/19/1997 3,517
14,000 Michigan State Building Authority Revenue Bonds, CP, Series 1, 3.60% due
10/16/1996 14,000
Michigan State Building Authority Revenue Bonds, Series I:
2,860 (Facilities Program), 4% due 10/01/1996 2,860
250 Refunding, 3.60% due 10/16/1996 250
4,000 Michigan State, HDA (Bloomfield Partners Project), CP, 3.65% due 10/22/96 4,000
Michigan State, HDA, Limited Obligation Revenue Bonds, VRDN (a):
1,200 (Laurel Valley Housing Price), 3.90% due 12/01/2007 1,200
4,000 (Sand Creek Apartments Project Phase 1), AMT, 4% due 1/01/2029 4,000
2,000 (Woodland Meadows Apartments Project), AMT, 3.95% due 3/01/2013 2,000
2,500 Michigan State, HDA, M/F Housing Revenue Bonds, CP, AMT, Series A, 3.50%
due 10/08/1996 2,500
5,845 Michigan State, HDA, S/F Mortgage Revenue Bonds, AMT, Series B, 3.70% due
12/01/1996 5,845
8,000 Michigan State Job Development Authority Revenue Bonds (Gordon Food
Service Project), VRDN, 3.80% due 8/01/2015 (a) 8,000
Michigan State Strategic Fund, Limited Obligation Revenue Bonds, VRDN (a):
1,000 (Adaptive Manufacturing L.L.C. Project), AMT, 4% due 8/01/2016 1,000
1,000 (Akemi Inc. Project), AMT, 4% due 3/01/2021 1,000
1,500 (BCM&N Project), AMT, 3.90% due 6/01/2020 1,500
3,100 (Baron Drawn Steel), IDR, AMT, 4.05% due 12/01/2006 3,100
2,500 (Cincinnati Milacron Inc. Project), AMT, 4% due 4/15/2005 2,500
4,200 (Dott Industries Inc. Project), AMT, 3.90% due 6/01/2001 4,200
1,500 (Hercules Drawn Steel Project), AMT, 4% due 8/01/2006 1,500
1,500 (Inalfa-Hollandia Inc. Project), AMT, 4% due 5/01/2016 1,500
2,000 (Ingersoll CM System Inc. Project), AMT, 3.90% due 12/01/2011 2,000
345 (Kay Screen Printing Inc.), AMT, Series A, 4.05% due 1/01/1999 345
3,000 (Midbrook Products Inc., Project), AMT, 3.90% due 10/01/2014 3,000
2,500 (Monarch Hydraulics Inc. Project), AMT, 3.75% due 7/01/2026 2,500
2,000 (Norbert Industries Inc. Project), AMT, UT, 3.75% due 4/01/2006 2,000
1,000 (Nuvar Properties L.L.C. Project), AMT, 3.95% due 7/01/2026 1,000
2,300 (Park Realty L.L.C.), AMT, Series A, 3.95% due 9/01/2026 2,300
1,565 (Perfection Steel Inc. Project), AMT, 3.95% due 3/01/2002 1,565
4,850 Refunding (Lake Shore Inc.), AMT, 4.05% due 11/01/2019 4,850
500 Refunding (Park Village Pines Project), 3.80% due 5/01/2006 500
6,500 (Riverwalk Properties L.L.C. Project), AMT, 4% due 8/01/2021 6,500
4,500 (Temperance Enterprises Co.), AMT, 4.05% due 8/01/2011 4,500
1,675 (Tom Miller Inc. Project), AMT, 3.90% due 12/01/2009 1,675
4,700 (United Waste Systems Inc. Project), AMT, 4% due 4/01/2010 4,700
3,000 (Universal Tube, Inc. Project), AMT, 3.90% due 8/01/2011 3,000
</TABLE>
<PAGE>
<TABLE>
CMA MICHIGAN MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1996 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Michigan $ 6,700 Michigan State Strategic Fund, PCR, Refunding (General Motors Corp. Project),
(concluded) VRDN, Series A, 4% due 4/01/2008 (a) $ 6,700
7,500 Michigan State Truck Line, VRDN, Series SG-44, 3.95% due 11/15/2024 (a)(d) 7,500
4,300 Rochester, Michigan, Community School District, State Aid Notes, 4% due
3/31/1997 (e) 4,305
3,000 Southgate, Michigan, Community School District, State Aid Notes, 4.10% due
3/30/1997 (e) 3,004
195 Sterling Heights, Michigan, Economic Development Corp., Limited Obligation
Revenue Refunding Bonds (Sterling Shopping Center), VRDN, 3.80% due
12/01/2010 (a) 195
1,000 Wyoming, Michigan, Economic Development Corp., Revenue Refunding Bonds
(Family One Inc. Project), VRDN, AMT, 3.95% due 11/01/2019 (a) 1,000
Total Investments (Cost--$215,432*)--98.3% 215,432
Other Assets Less Liabilities--1.7% 3,796
--------
Net Assets--100.0% $219,228
========
<FN>
(a)The interest rate is subject to change periodically based on
certain indexes. The interest rate shown is the rate in effect
at September 30, 1996.
(b)Prerefunded.
(c)AMBAC Insured.
(d)FGIC Insured.
(e)Bank Qualified.
(f)MBIA Insured.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA MICHIGAN MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF SEPTEMBER 30, 1996
<S> <C> <C>
Assets:
Investments, at value (identified cost--$215,432,042) (Note 1a) $ 215,432,042
Cash 138,034
Interest receivable 1,253,682
Deferred organization expenses (Note 1d) 527
Prepaid registration fees and other assets (Note 1d) 2,649,695
-------------
Total assets 219,473,980
-------------
Liabilities:
Payables:
Investment adviser (Note 2) $ 99,235
Distributor (Note 2) 58,466
Beneficial interest redeemed 35 157,736
-------------
Accrued expenses and other liabilities 88,332
-------------
Total liabilities 246,068
-------------
Net Assets $ 219,227,912
=============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares authorized $ 21,937,323
Paid-in capital in excess of par 197,435,908
Accumulated realized capital losses--net (Note 4) (145,319)
-------------
Net Assets--Equivalent to $1.00 per share based on 219,373,231 shares of beneficial
interest outstanding $ 219,227,912
=============
See Notes to Financial Statements
</TABLE>
<TABLE>
CMA MICHIGAN MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 4,413,368
<PAGE>
Expenses:
Investment advisory fees (Note 2) $ 619,373
Distribution fees (Note 2) 152,439
Transfer agent fees (Note 2) 29,027
Accounting services (Note 2) 24,665
Professional fees 24,269
Registration fees (Note 1d) 20,992
Custodian fees 13,482
Printing and shareholder reports 11,052
Pricing fees 2,949
Trustees' fees and expenses 1,250
Amortization of organization expenses (Note 1d) 267
Other 1,577
-------------
Total expenses 901,342
-------------
Investment income--net 3,512,026
Realized Loss on Investments--Net (Note 1c) (13,283)
-------------
Net Increase in Net Assets Resulting from Operations $ 3,498,743
=============
See Notes to Financial Statements
</TABLE>
<TABLE>
CMA MICHIGAN MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
September 30, March 31,
Increase (Decrease) in Net Assets: 1996 1996
<S> <C> <C>
Operations:
Investment income--net $ 3,512,026 $ 7,385,953
Realized loss on investments--net (13,283) (13,976)
------------- -------------
Net increase in net assets resulting from operations 3,498,743 7,371,977
------------- -------------
Dividends to Shareholders (Note 1e):
Investment income--net (3,512,026) (7,385,953)
------------- -------------
Net decrease in net assets resulting from dividends to shareholders (3,512,026) (7,385,953)
------------- -------------
<PAGE>
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 540,107,324 1,072,495,850
Net asset value of shares issued to shareholders in reinvestment of dividends
(Note 1e) 3,511,986 7,386,278
------------- -------------
543,619,310 1,079,882,128
Cost of shares redeemed (571,922,085) (1,052,494,852)
------------- -------------
Net increase (decrease) in net assets derived from beneficial interest transactions (28,302,775) 27,387,276
------------- -------------
Net Assets:
Total increase (decrease) in net assets (28,316,058) 27,373,300
Beginning of period 247,543,970 220,170,670
------------- -------------
End of period $ 219,227,912 $ 247,543,970
============= =============
See Notes to Financial Statements
</TABLE>
<TABLE>
CMA MICHIGAN MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
For the
Six
Months
The following per share data and ratios have been derived Ended
from information provided in the financial statements. Sept. 30, For the Year Ended March 31,
Increase (Decrease) in Net Asset Value: 1996 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Investment income--net .01 .03 .03 .02 .02
-------- -------- -------- -------- --------
Total from investment operations .01 .03 .03 .02 .02
-------- -------- -------- -------- --------
Less dividends from investment income--net (.01) (.03) (.03) (.02) (.02)
-------- -------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Investment Return 2.83%* 3.13% 2.57% 1.81% 2.24%
======== ======== ======== ======== ========
<PAGE>
Ratios to Average Net Assets:
Expenses, net of reimbursement .73%* .73% .73% .72% .65%
======== ======== ======== ======== ========
Expenses .73%* .73% .73% .72% .74%
======== ======== ======== ======== ========
Investment income--net 2.83%* 3.05% 2.54% 1.79% 2.22%
======== ======== ======== ======== ========
Supplemental Data:
Net assets, end of period (in thousands) $219,228 $247,544 $220,171 $236,435 $200,200
======== ======== ======== ======== ========
<FN>
*Annualized.
See Notes to Financial Statements.
</TABLE>
CMA MICHIGAN MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA Michigan Municipal Money Fund (the "Fund") is part of CMA Multi-
State Municipal Series Trust (the "Trust"). The Fund is registered
under the Investment Company Act of 1940 as a non-diversified, open-
end management investment company. These unaudited financial
statements reflect all adjustments which are, in the opinion of
management, necessary to a fair statement of the results for the
interim period presented. All such adjustments are of a normal
recurring nature. The following is a summary of significant
accounting policies followed by the Fund.
(a) Valuation of investments--Investments are valued at amortized
cost, which approximates market value. For the purpose of valuation,
the maturity of a variable rate demand instrument is deemed to be
the next coupon date on which the interest rate is to be adjusted.
In the case of a floating rate instrument, the remaining maturity is
the demand notice payment period.
(b) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
<PAGE>
(c) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income (including amortization of
premium and discount) is recognized on the accrual basis. Realized
gains and losses on security transactions are determined on the
identified cost basis.
(d) Deferred organization expenses and prepaid registration fees--
Deferred organization expenses are charged to expense on a straight-
line basis over a five-year period. Prepaid registration fees are
charged to expense as the related shares are issued.
(e) Dividends and distributions to shareholders--The Fund declares
dividends daily and reinvests daily such dividends (net of non-
resident alien tax withheld) in additional fund shares at net asset
value. Dividends are declared from the total of net investment
income, excluding discounts earned other than original issue
discounts. Net realized capital gains, if any, are normally
distributed annually after deducting prior years' loss carryforward.
The Fund may distribute capital gains more frequently than annually
in order to maintain the Fund's net asset value at $1.00 per share.
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM" or "Adviser"). The general partner of
FAM is Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee based upon the average daily
value of the Fund's net assets, at the following annual rates: 0.50%
of the first $500 million of average daily net assets; 0.425% of
average daily net assets in excess of $500 million but not exceeding
$1 billion; and 0.375% of average daily net assets in excess of $1
billion.
CMA MICHIGAN MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
Pursuant to the Distribution and Shareholder Servicing Plan in
compliance with Rule 12b-1 under the Investment Company Act of 1940,
Merrill Lynch, Pierce, Fenner & Smith Inc. ("MLPF&S") receives a
distribution fee from the Fund at the end of each month at the
annual rate of 0.125% of average daily net assets of the Fund. The
distribution fee is to compensate MLPF&S financial consultants and
other directly involved branch office personnel for selling shares
of the Fund and for providing direct personal services to
shareholders. The distribution fee is not compensation for the
administrative and operational services rendered to the Fund by
MLPF&S in processing share orders and administering shareholder
accounts.
<PAGE>
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), a wholly-
owned subsidiary of ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, PSI, MLPF&S, MLFDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares purchased and redeemed during the period
corresponds to the amounts included in the Statements of Changes in
Net Assets for net proceeds from sale of shares and cost of shares
redeemed, respectively, since shares are recorded at $1.00 per
share.
4. Capital Loss Carryforward:
At March 31, 1996, the Fund had a net capital loss carryforward of
approximately $116,000, of which $62,000 expires in 2001, $4,000
expires in 2002, and $50,000 expires in 2003. This amount will be
available to offset like amounts of any future taxable gains.
CMA MICHIGAN
MUNICIPAL MONEY FUND
Officers and Trustees
Arthur Zeikel--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Terry K. Glenn--Executive Vice President
Vincent R. Giordano--Senior Vice President
Edward J. Andrews--Vice President
Donald C. Burke--Vice President
Peter J. Hayes--Vice President
Kenneth A. Jacob--Vice President
Darrin J. San Fillippo--Vice President
Kevin A. Schiatta--Vice President
Helen Marie Sheehan--Vice President
Gerald M. Richard--Treasurer
Robert Harris--Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 1713
Boston, Massachusetts 02101
<PAGE>
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 221-7210*
[FN]
*For inquiries regarding your CMA account,
call (800) CMA-INFO [(800) 262-4636].
